NNPC Restructures OPAs, Crude Oil Lifting Contracts

The Nigerian National Petroleum Corporation (NNPC) said due to the current structure of the Offshore Processing Agreements (OPA) entered into in January 2015 are skewed in favour of oil companies, it has commenced the process of establishing an alternative OPA based on an optimum yield pattern with tender processing fees.

A statement from the NNPC said; “After due appraisal of the performance trajectory, we have invited Messrs. Oando, Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total Trading to bid for the new Offshore Processing Agreement while we have engaged AITEO, Sahara Energy and Duke Oil to exit the current OPA”.

The NNPC also said it has obtained the permission of President Muhammadu Buhari to kick-start the tendering process for the 2015/2016 Crude Oil Term Contract for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.

The Corporation noted that the process, which would commence with the advertisement of the Crude Oil Term contract in both National and International print media for a period of one month, has been carefully structured to weed out ‘briefcase companies’ and rent seekers.